Payroll & HR

Leave Encashment Taxability

Calculate leave encashment tax exemption for government (fully exempt) and private employees using all 4 caps under Section 10(10AA).

Employment Type

Basic + DA (₹/month)

Leaves Being Encashed (days)

Years of Service

Income Tax Slab Rate (%)

Private employees get exemption equal to the minimum of the 4 caps under Section 10(10AA). Statutory ceiling revised to ₹25L (2023 notification). Government employees enjoy full exemption. Daily salary = Basic+DA ÷ 30.

For general guidance only. Consult your CA for advice specific to your situation.